Chinese bank loans contract for first time in 20 years

China’s New Bank Loans Drop for First Time Since 2005

New bank loans in China contracted last month for the first time in 20 years, new data released on Aug. 13 show. In July, new yuan loans declined by 50 billion yuan ($6.97 billion), following the 2.24 trillion yuan ($312.2 billion) increase in June. This represented the first monthly decline since July 2005. The market had penciled in growth of 300 billion yuan ($41.8 billion). While July typically reports slower growth as financial institutions…

China Credit Shock: New Loans Fall For First Time In 20 Years Amid Relentless Deleveraging

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China’s First Lending Drop in 20 Years Exposes Limits of Cash-Driven Stimulus

In July 2025, China’s banking sector saw something extraordinary: new loans shrank by ¥50 billion ($7 billion)—the first monthly drop in over two decades. This dramatic shift wasn’t just a blip. Total new credit flowing into the economy (known as total social financing) slid to ¥1.16 trillion ($161 billion), far below what experts and officials […]

Chinese bank loans contract for first time in 20 years

July’s fall of almost $7bn comes in well below even the most pessimistic analyst’s forecasts

China’s bank loans unexpectedly contract for first time in 20 years

AgenciesChina’s new yuan loans contracted in July for the first time in 20 years as the economy struggled, falling well short of analysts’ forecasts, but improvements in...